Another Big Day for Twitter: Options Launch

Twitter's frenzied initial public offering last week will be followed by a highly anticipated debut on Friday of options tracking the company’s stock. (Photo: AP)

This transcript has been automatically generated and may not be 100% accurate.

... been due ... to a morning it's Friday welcome to MoneyBeat I'm Paul vignette so was just over a week ago ... Twitter shares started trading it seems a lot longer rates ... and other big debut today for the stock ... no not for the stock ... for the options on the stock using Twitter shares that down a little bit today ... today's options trading what does that mean what is it mean the fact that we can interfere with the story ... sola oke Options briefly are just beginning to wind down the stock to its move higher or lower they started trading this morning right yet penetrating the minute can you eat and there's a lot of flexibility with options he can pick a prank we can take I would like to buy or sell their heightening its kind that price I'm NFL someone else the right to buy or sell and ... for this a lot of flexibility in sound ... today the strong opening and just forty five minutes after the opening ... of a thirty five thousand contracts and treated ... that that's a big number ... big number for some perspective linked and when the auction started trading in two thousand eleven they only treated and ... the twenty three thousand of the contract funding for the whole day so in honor the surpassed Lincoln Center ... by ... what not to make it as high as Facebook options gotten interest and but the son of record as the sun is out into the strikes with the stock is doing ... does this for the options market had the ability to move this to me it's only people ... betting on the stock is going to have the ability actually move the stock itself it does we actually found that last year ... when Facebook options debuted there were sapped demand for beer shops and ... back then the people to a filing that it is trading those options with the on investors ... and had to turn around and hedge their position by shorting stock yet so when there's not a lot of shares outstanding ... lately after debut it can be linked with the stock lower ... this is no way to get in on sorting to share right yes he can and buy a put option which gives you the right to sell at the time to sell a stock ... so if effect delete it and I still a convention and Sally you can say ... actually we saw this morning I'll lot of people are buying and forty three and a half dollar puts the UN for the end of the month so they don't think that by the end of the month ... I've Twitter shares and innovate be below that price and that's when they make money is went with this fall below that ... things in the so the stock earlier it's around forty five ... the league moved a lot from ... what I mean five to twenty six opened at forty five am ... and it's below that now so ... not a lot of momentum in the stock right now you're not conspiring you see that what does that make you think ... well then that the non apparently can't embed it upright these options because Twitter doesn't have much of a history so they don't know what kind of volatility to the Maxima stock ... volatility is an important part of an option's price I liked ... it people are gonna be watching this thinking ... I these options too expensive because Twitter is not as volatile as Facebook that maybe people are pricing based on models the concrete the spine Center ... it's gonna be an interesting at drivers to have to